Why a small bank like First Mid-Illinois ignored the conventional wisdom — 'Commercial banks buy property/casualty firms.' 'Private-equity will outbid you.' 'Leave the innovation to the big guys.' — and bought a retail health-insurance agency.

Deals by M&T, KeyCorp and BB&T opened the door to big-bank M&A, even if investors balked at the prices. There are a few other regionals that look poised to make a big splash, says Chris Marinac of FIG Partners.

An activist investor has called on the lead director of Banc of California in Irvine to disclose details about Chairman and Chief Executive Steven Sugarman's involvement in an investment fund that violated securities laws.

Scituate Federal Savings Bank in Scituate, Mass., and S-Bank in Weymouth, Mass., have merged and changed the name of the surviving institution.

Some of BBCN's directors actually favored a deal with Hanmi to cement its position as the nation's biggest Korean-American bank. That disclosure could spur Hanmi to make a direct appeal to BBCN's shareholders in coming months.

A breakdown of M&A announcements in the financial services industry for the week ended December 5.

Peoples Financial Services in Scranton, Pa., has bought a retirement planning operation.

Codorus Valley Bancorp in York, Pa., plans to sell $30 million of stock to fund its exit from the Small Business Lending Fund program.

BBCN Bancorp in Los Angeles has agreed to buy Wilshire Bancorp in Los Angeles.

Banks have a lot of work to do to modernize branches and keep their technology on par with other businesses' digital tools. Here are some ideas worth borrowing from retailers, restaurants and consumer electronics makers if banks haven't adopted them already, says appointment-software firm Financial Management Solutions.

The $2.5 billion-asset company will freeze pension benefits for the 10% of its workforce that still receive a pension.

Banks face a growing risk of complacency given years of improved credit quality. They should periodically evaluate the status of loans and underlying collateral to make sure they proactively manage risk.

The board of Pascack Bancorp in Waldrick, N.J., spent years debating whether to sell the company or remain independent.

Roy Barnes, a former Democratic governor of Georgia, and his brother have agreed to buy WestSide Bank in Hiram, Ga., for $3 million.

Lake Sunapee Bank Group in Newport, N.H., has exited the Small Business Lending Fund.

The $3.8 billion-asset First Busey said in a press release Thursday that it will pay $210.7 million, or $17.24 a share, in stock for the $1.5 billion-asset Pulaski.

Athens Bancshares in Tennessee has decided to delist its stock from Nasdaq and deregister with the Securities and Exchange Commission.

The $1 billion-asset Charter said in a press release Thursday that it will pay $58.8 million, or $20.50 a share for the $369 million-asset parent of Community Bank of the South.

The $140 million-asset company said in a press release Thursday that Martin May would also become its president.

The small bank was the only institution to bid on a contract to process cash payments to the Illinois Department of Revenue. Executives are eager to collect fees without feeling compelled to make loans or hold deposits for the controversial industry.